Calgon Carbon and Mitsubishi Complete Joint Venture
PITTSBURGH, PA – 09/11/2002
Calgon Carbon Corporation (NYSE:CCC) announced today that Mitsubishi Chemical Corporation of Tokyo, Japan and Calgon Carbon have signed the final agreements to form a joint venture partnership that will produce and sell activated carbon and related services throughout Japan. The new alliance company, Calgon Mitsubishi Chemical Corporation, will begin operation in October 2002.
Mitsubishi Chemical will own 51% of the joint venture, while Calgon Carbon will own 49%. As the minority owner, Calgon Carbon will report results under the equity method of accounting. While this will reduce total consolidated sales for Calgon Carbon by about $7 million annually, it will have a positive effect on its net income. On an earnings per share basis, it is expected that the joint venture will contribute about $0.04 to Calgon Carbon’s EPS in 2003.
Mitsubishi is the largest producer of granular activated carbon (GAC) in Japan. Calgon Carbon is the world’s largest producer of GAC and operates a reactivation facility in Fukui Prefecture, Japan.
Commenting on the announcement, Jim Cederna, Calgon Carbon’s chairman and chief executive officer, said, “The joint venture is consistent with Calgon Carbon’s strategy to expand our business globally and to remain the world leader in activated carbon and services. Calgon Mitsubishi Chemical Corporation will be the largest provider of activated carbon solutions for air and water purification in Japan.”
Calgon Carbon Corporation, headquartered in Pittsburgh, Pennsylvania, is a global leader in services and solutions for making air and water cleaner and safer. The company employs approximately 1,000 people at 13 operating facilities and 11 sales and service centers worldwide.
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This document contains certain statements that are forward-looking relative to the company’s future strategy and performance. They involve known and unknown risks and uncertainties that may cause the company’s actual results in future periods to be materially different from any future performance suggested in this document. Further, the company operates in an industry where it may be influenced by economic and other factors beyond the company’s control.
For more information, please contact Gail Gerono (412) 787-6795